6.7

(a) Define and distinguish, with examples, the following three classifications of ledger accounts:

(i) real accounts;

(ii) personal accounts;

(iii) nominal accounts.

(b) Give the appropriate classification for each of the following account balances:

(i) fixed assets at cost, £10,000;

(ii) wages paid, £700;

(iii) discounts received, £1,400;

(iv) balance due from Double Ltd, £1,500.